try a practice

question:
Lary, an intelligent real estate investor wants to
purchase a 20-unit apartment building has an annual net income of
$180,000. how much would he be willing to pay for the building, if he
use a 8% cap rate?

find a answer here

answer

The answer should be $2,250,000 not $3,375,000

Purchase price is
NOI/Cap Rate = Maximum Purchase Price


Cap rate is
NOI/Purchase Price

opps! you were right.
thanks for correcting.
my Calculator must be too old.

let's try another one.
Question:
John bought a house for $200,000. wants to sell it and make 40% profit after a 6% commission. what must he sell his house for?

to be announced